This film describes the state of the speech recognition project as of Spring, 1969. A discussion of the problems of speech recignition is followed by two realtime demonstrations of the system. The first shows the computer learning to recognize phrases and the second shows how the hand-eye system may be controlled by voice commands. Commands as complicated as 'Pick up the small block in the lower lefthand corner', are recognized and the tasks are carried out by the computer controlled arm. (This copy ends abruptly, Ray Reddy recently said he can provide the missing part, 2006).